75 The Economy of the North 2008 Interdependency of subsistence and market economies in the Arctic In the mixed cash-subsistence economies of the Arc- tic, consumption possibilities are usually created by a combination of market participation and subsistence activities. The purpose of this chapter is to give a brief overview of the importance of subsistence activities in diferent Arctic regions. With some notable exceptions, as in Alaska, subsistence activities are mostly invis- ible in oicial statistics, due to lack of data and lack of recognition of how they contribute to livelihood and well-being. Hunting, herding, fishing and gathering continue to be of major significance to the indigenous peoples of the Arctic in providing food, social relationships and cul- tural identity. 1 The Arctic Human Development Report 2 stated that: “Customary harvesting practices are not only culturally but also economically important lo- cally, although their role varies by region, ethnic group, urban or rural setting, and generation.” Subsistence activities and the cash economy are mutu- ally dependent on each other for providing consump- tion possibilities in the Arctic today, and are at the same time part of a lifestyle that represents continuity, shar- ing and connection to nature. 3 A study by Rasmussen 4 showed that for hunters in Greenland, the estimated value of their production for own consumption was almost as large as the sales value of their production for sale, which is a considerable share of their income. Estimates of subsistence production of indigenous fami- lies in Northern Russia indicate that the market value of consumed goods from own production can be as high as several times the annual monetary income. 5 On the other hand, when traditional hunting and 6 Indigenous people and other Arctic residents tend to base their livelihood both on subsistence and market activities. Economic activities, like petroleum explora- tion, mining, transportation, tourism and other services have the potential to alter the Arctic environment and social systems considerably. 7 Sustainable development 6. Interdependency of subsistence and market economies in the Arctic Iulie Aslaksen, Winfried Dallmann, Davin L. Holen, Even Høydahl, Jack Kruse, Birger Poppel, Mary Stapleton and Ellen Inga Turi requires that new economic activity represents addi- tional benefits to indigenous and other local people. 8 The concept of subsistence has had a prominent posi- tion in discussions of indigenous peoples’ rights in international legislation, conventions and declarations, as in The United Nations Covenant on Civil and Political Rights, from 1966, and The International Labour Orga- nization (ILO) Convention No 169: The Indigenous and Tribal Populations Convention, from 1989. A crucial issue for indigenous peoples is the recognition of their right to natural resources and land as material basis for their culture. A milestone in the rights of indigenous peoples worldwide was reached on 13 September 2007 when the United Nations Declaration on the Rights of Indigenous Peoples was adopted by the General As- sembly. Traditional ecological knowledge is defined as the knowl- edge, practice, and beliefs about dynamic relationships of living beings and the environment, a knowledge based on experience, which has evolved in adaptive processes between humans and nature and has been handed down from generation to generation. In the Arctic, traditional ecological knowledge about animal migrations, ice pat- terns, vegetation and weather is used for improved hunting and harvesting, and may now supplement and enrich scientific data on climate change impacts. Combin- ing traditional and scientific knowledge about nature is an important part of understanding the resilience capacity of ecological and social systems in the Arctic, enhancing the potential for sustainable development and self-sufficiency. Reindeer herding provides examples of how traditional ecological knowledge is relevant for adaptation to climate change. The texture of snow and ice is an important determinant of the access of reindeer to food. “Reading” snow and ice is only one element of the ongoing process of observing and evaluating grazing pastures and weather conditions, wind directions, the sequence of changes in nature, all factors which determine access to pastures and the behaviour of the reindeer herd. 1 1 Heikkilä, L. (2006): ‘The Comparison of Indigenous and Scientific Perceptions of Reindeer Management’, in Forbes, B.C. et al. (ed.) Reindeer Management in Northernmost Europe, Springer-Verlag, 73-93. Tyler, N.J.C. et al. (2007): Saami reindeer pastoralism under climate change: Applying a generalized framework for vulnerability studies to a sub-arctic social-ecological system, Global Environmental Change, 17, 191-206.